The courts frequently consider tax planning which would be unlikely to be put in place these days. Their discussion of the fundamental principles underlying that planning will however often be of general applicability. The FTT decision in Hargreaves Property Holdings Ltd v HMRC [2021] UKFTT 390 (TC) is a case in point: its scrutiny of a financing structure may well affect how ordinary course finance is structured in light of the UK taxation of ‘yearly’ interest paid to overseas creditors.
The company was a UK resident parent of a property investment group; crucially during the time that HMRC’s disputed assessments relate to it received all its income and capital gains from property located in the UK. In 2004 it entered into a scheme to bring about a more advantageous tax position with regard to its financing arrangements intended to result in a mismatch whereby the company would...
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The courts frequently consider tax planning which would be unlikely to be put in place these days. Their discussion of the fundamental principles underlying that planning will however often be of general applicability. The FTT decision in Hargreaves Property Holdings Ltd v HMRC [2021] UKFTT 390 (TC) is a case in point: its scrutiny of a financing structure may well affect how ordinary course finance is structured in light of the UK taxation of ‘yearly’ interest paid to overseas creditors.
The company was a UK resident parent of a property investment group; crucially during the time that HMRC’s disputed assessments relate to it received all its income and capital gains from property located in the UK. In 2004 it entered into a scheme to bring about a more advantageous tax position with regard to its financing arrangements intended to result in a mismatch whereby the company would...
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